Mthuli Ncube embarks on global charm offensive

by Staff reporter

25 Feb 2019 at 08:20hrs | Views

FINANCE minister Mthuli Ncube says he will embark on a roadshow to global capital powerhouses in Europe and the United States to explain to would-be investors the progress the country has taken so far on its reform agenda.

Authorities in the southern African country are desperate to attract much-needed new foreign capital, which has stayed at bay because of policy inconsistencies, currencyproblems and bad governance.

"We are going to go to what we call a global money deal roadshow in June this year, I as Finance minister and Reserve Bank of Zimbabwe governor (John Mangudya), permanentsecretary of finance George Guvamatanga and other captains of industry," he said.

"We will visit global capital and go for a roadshow. We will start with Frankfurt and go to Japan, London and New York and maybe the West Coast also, so that we explain thereform agenda the progress we are making. (We will) also explain the economic policies and the opportunities that are available in this country. We are not trying to raise themoney or do a deal."

Ncube noted that the introduction of the market-based exchange rate system will pave way for investors to flood the country.

"By introducing this market-based exchange rate system, we are providing certainty on the exchange regime. Before, they were asking us, in fact, do you know the fact that investors could not remit the dividends because we don't have an exchange rate regime. Capital can only come in if it knows it can get out. By doing what we have done, we are dealing with it," he said.

When presenting the Transitional Stabilisation Programme last October, Ncube said, to court the best suitors for parastatals and stimulate foreign direct investment, governmenthad resolved to publish international tenders in the world's biggest economies and other strategic jurisdictions.

Ncube and his team face an insurmountable task to market a country dogged by rampant corruption and over-arching State interference in business.

Zimbabwe is ranked 155 out of 190 countries on the global ease of doing business, according to the latest ranking, and needs to do more to attract global capital.

The country also ranks poorly on Transparency International's corruption index, dropping three places from last year to 160 out of 180 countries in the 2019 report.